Trading Journal Entry For 3-21-2014

Today was a bit different of an atmosphere than we have seen in a little while. We started the day with a significant gap up, followed by further early morning gains. Then markets went basically flat — with very little volatility even — all through the morning and into the afternoon, before beginning a steady decline lasting the rest of the afternoon. Not especially tradeable market conditions from a day trading perspective, but it treated us well enough. As for the US indices themselves, they finished the day down about a third of a percentage point, which is about the same amount they were up earlier in the day. The S&P500 index closed out the day at 1,866.52, a decline of -5.49 points, or -0.29% on the day.

daily S&P500 index chart for 3-21-2014

We, however, performed much better than the broad market indices did. Thankfully. Because we sure needed a decent day after the last few days of blah. We had a lot going on today and so we were not able to watch the markets full-time, or make all that many trades. But the ones which we did make were good enough to make it a worthwhile day at least. We made a total of four standard high/low binary options trades, and didn’t make any ladder option or other contract trades today. Let’s take a look, shall we?

first s&p500 index trade for 3-21-2014

Our first trade of the day came about an hour prior to the rest of them, and was also our only losing trade of the day. This was actually the fourth day in a row of starting out in the negatives, but that didn’t last long. The shot above was taken immediately after purchasing the call option contract on the S&P so that you can see exactly where we got into the trade at. We were hoping to ride the trend here but our timing couldn’t have been worse. This is right around the time that markets changed course and started their steady declines for the rest of the day.

S&P500 Trade #1 Summary – High/Low Call Option

Trade Outcome: OTM
Entry Time / Expiry:
 15:40 / 16:00
Investment: $100.00
Returns Offered: 76%
Entry Rate / Expiry Rate: 1881.91 / 1880.67
Returns Received: $0.00
Profit/Loss: -$100.00 Loss

second winning s&p500 index trade 3-21-2014

As you can see from the image above, this trade was entered into after the index was well into its period of decline. And we were betting that the decline would continue, at least for the next 30 minutes of the contract life. And as you already know from our opening chart of the S&P index, markets did indeed continue to decline for the rest of the day, putting our trade safely ITM by expiry.

S&P500 Trade #2 Summary – High/Low Put Option

Trade Outcome: ITM
Entry Time / Expiry:
 17:31:04 / 18:00
Investment: $100.00
Returns Offered: 76%
Entry Rate / Expiry Rate: 1872.04 / 1870.94
Returns Received: $176.00
Profit/Loss: +$76.00 Profit

dow index trade chart for 3-21-2014

This next trade was made literally seconds after the last one was opened, and was basically just a continuation of that trade. A “doubling down” so to speak. After all, where one major US index is declining, it is very likely others will be as well. And it is at least a little “safer” than just investing twice as much in the one option. But all theory aside, how did things actually turn out? Solidly ITM again, nice.

DOW Index Trade Summary – High/Low Put Option

Trade Outcome: ITM
Entry Time / Expiry:
 17:31:29 / 18:00
Investment: $100.00
Returns Offered: 76%
Entry Rate / Expiry Rate: 16367.60 / 16362.04
Returns Received: $176.00
Profit/Loss: +$76.00 Profit

high/low put option oil trade 3-21-2014

The last trade which we made today was a bit of a change of pace. This one was purchased on oil, using a high/low call option contract for our standard $100 investment. And you can actually see pretty well just in the chart above what we were seeing that prompted us to enter into this trade. As you can see price was just flirting with a low-level which had previously been tested, and rebounded from. There was a pretty good chance that the same would occur here. A good enough chance to be worth a $100 trade anyway. And as you may remember from our intro, this trade too finished ITM to make the day a 3/1 win/loss split.

Oil Trade Summary – High/Low Call Option

Trade Outcome: ITM
Entry Time / Expiry:
 17:33 / 18:00
Investment: $100.00
Returns Offered: 76%
Entry Rate / Expiry Rate: 99.795 / 99.955
Returns Received: $176.00
Profit/Loss: +$76.00 Profit

Which brings us to the summaries and totals for the day’s trades combined. Out of the four standard high/low option contract trade which we made today, three finished ITM, and one finished OTM. We made no ladder options or other “exotic” option trades today.

goptions daily investments history totals for 3-21-2014

Daily Investments History Totals For 3-21-2014

Trades Entered: Four (4) High/Low
Standard Trade Outcomes:
 Three (3) ITM + One (1) OTM
Total Investments: $400.00
Total Returns Received: $528.00
Total Daily Profit/Loss: +$128.00 Daily Profit
Daily ROI: +32.0% Daily ROI

Not a bad day for the very little time and effort put into it and the reasonably safe investment amounts. It was not quite good enough, however, to bring us into positive territory for the week as a whole. Almost, but not quite. Which unfortunately means that this will be our first losing week in almost two months, breaking our streak. It was an interesting week in the markets overall as well, and we look forward to seeing how things develop over the next week. Good luck, and stay safe out there!

Monday, 17th Trades | Tuesday, 18th Trades | No Weds Trades | Thursday, 20th Trades

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BinaryBoss

Jason--AKA "BinaryBoss"--is a graduate of WSU with a degree in economics with a financial markets focus. In 2009 Jason left his job with Microsoft in his home state of Washington to pursue a life of self-employment.

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